Peak Rare Earths Presents Exciting Progress on World-Class Ngualla Rare Earth Project in Tanzania

• Peak Rare Earths is focused on the development of the Nagwala Rare Earth Project in Tanzania, one of the world's largest and highest-grade Rare Earth projects.
• The project is supported by the government of Tanzania and Shanghai, its major shareholder, with a binding off-take agreement and integrated EPC development and funding solutions.
• The Ngualla project has been significantly de-risked both technically and from a regulatory perspective, with a strong leadership team in place.
• The project offers high-grade reserves, a long mine life of over 24 years, low radionuclide levels, and significant exploration and development potential. Tanzania has become an increasingly attractive mining jurisdiction, with strong government support for the project and the local community benefiting from infrastructure development and job creation.

About Peak Rare Earths

Peak Rare Earths (ASX:PEK) CEO Bowden Davis recently presented an update on the company's Ngualla Rare Earth Project in Tanzania at the Africa Down Under conference in Perth. The presentation highlighted the tremendous progress Peak has made over the past year in advancing this world-class project towards production.

Ngualla Poised to Become One of the World's Largest, Lowest Cost Rare Earth Mines

The Ngualla Project is located in the Songwe region of southwestern Tanzania and is 100% owned by MUMBA Minerals, an 84% subsidiary of Peak Rare Earths. Ngualla hosts a very large, high-grade rare earth deposit, with ore reserves sufficient to support a 24+ year mine life. The project is expected to produce approximately 24,000 tonnes of rare earth oxides per year, making it one of the largest rare earth mines globally.

Importantly, Ngualla will have low production costs, with estimated cash operating costs of just US$17.42 per kg of rare earth oxides. This is due to the exceptionally high grades at Ngualla, which average 4.29% of total rare earth oxides. The deposit also has very low levels of radioactive elements like uranium and thorium, which makes processing simpler and more cost-effective.

The recently updated Bankable Feasibility Study for the project highlights exceptional economics, with an after-tax NPV of US$1.35 billion and IRR of 37%.

Strategic Partnership with the Tanzanian Government

A key milestone achieved over the past year was the signing of a Framework Agreement between Peak and the Tanzanian Government. This agreement provides a clear path forward for the development of Ngualla, while aligning the interests of Peak and the Government.

Under the agreement, the Government will hold a 16% free carried interest in the project. The Government also has the right to acquire up to 50% ownership should the project move downstream into rare earth processing.

Peak Rare Earths has established strong ties in Tanzania through its in-country team and years of community engagement. The company is committed to maximizing the benefits of the Ngualla project for local communities and the nation.

De-Risking on Multiple Fronts

In addition to securing the Framework Agreement, Peak has made excellent progress in de-risking Ngualla over the past year:

• The Mining License was granted by the Tanzanian government, providing tenure for the life-of-mine.
• Binding offtake agreements were executed with Peak's major shareholder, Shanghai Decent Investment Group. This agreement covers the supply of 7,500 tonnes per year of rare earth concentrate, about one-third of Ngualla's annual production.
• Front End Engineering Design (FEED) is underway and due to complete in November 2022. This is a crucial step in finalizing capital and operating costs.
• Early works have commenced on site to support project development.
• A$27.5 million was raised in new equity to fund ongoing development activities.
• A Memorandum of Understanding was signed with Shanghai Decent to deliver an integrated EPC and funding solution. This will streamline construction and minimize risk.

The Next Steps for Ngualla

With much of the upfront development work now complete, Peak's focus turns to securing funding and commencing project construction. The target is to achieve Financial Close on project financing in mid-2023.

If funding milestones are met, construction of the mine is slated to begin in 2023. First production of rare earth concentrates could then occur in early 2026. The initial mine life is estimated at 24 years, with excellent potential for future expansion.

In addition to the current development activities, Peak Rare Earths has kicked off new exploration to assess the potential for other critical minerals like niobium and phosphate at Ngualla. There are also longer-term plans to evaluate downstream rare earth processing in Tanzania.

Heading Towards Production With Momentum

In summary, Peak Rare Earths has made outstanding progress over the past year positioning the Ngualla Rare Earth Project to realize its potential as one of the world's premier rare earth mines. The strategic partnership with the Tanzanian government, securing of the Mining License, offtake deals, and advanced project de-risking have built tremendous momentum.

With its low costs, large scale, and tier-1 jurisdiction, Ngualla is on track to deliver substantial long-term value for Peak shareholders. The project also promises to provide major economic benefits to local communities and Tanzania as a whole. Peak now has a clear line of sight towards bringing this exceptional rare earth asset into production within the next 3 years.

Reasons to Invest

Strategic Importance of Rare Earths - Rare earths are essential for electric vehicles, wind turbines, consumer electronics and defense applications. With surging demand and constrained supply, rare earths prices are forecast to rise substantially.

World-Class Asset - Ngualla will be one of the world's largest and lowest cost rare earth mines, with huge scale, high grades, and long mine life. This is a Tier 1 strategic asset.

Exceptional Economics - The project has an after-tax NPV of US$1.35 billion and 37% IRR based on the Bankable Feasibility Study. There is potential for further optimization and expansion over time.

Clear Pathway to Production - Peak has derisked the project and made excellent progress securing licenses, permits, offtake deals and financing. The first production is targeted within 3 years.

Strong Partnerships - Peak Rare Earths has aligned interests with the Tanzanian government and has Shanghai Decent as a major shareholder and strategic partner.

Experienced Management - Peak's board and management have deep experience in mining project development and operations in Africa.

Peak Rare Earth's Ngualla project is a world-class rare earth asset that can deliver outstanding returns for investors based on its scale, low costs, strategic importance and Peak's strong track record in advancing the project. The investment case is very compelling.